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Brady Corporation (BRC)

Company Dividend Discount ModelIndustry: Security & Protection ServicesSector: Industrials

Valuation Snapshot

Stable Growth$38.82 - $59.90$48.61
Multi-Stage$52.67 - $57.76$55.17
Blended Fair Value$51.89
Current Price$75.91
Upside-31.64%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS-0.09%1.06%0.950.940.950.960.950.950.930.890.870.85
YoY Growth--1.07%-0.76%-1.15%0.40%-0.02%2.29%4.34%2.37%2.63%-0.41%
Dividend Yield--1.25%1.32%1.84%2.09%1.79%2.53%1.66%2.22%2.29%2.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)196.41
(-) Cash Dividends Paid (M)45.66
(=) Cash Retained (M)150.75
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)39.2824.5514.73
Cash Retained (M)150.75150.75150.75
(-) Cash Required (M)-39.28-24.55-14.73
(=) Excess Retained (M)111.47126.20136.02
(/) Shares Outstanding (M)47.9747.9747.97
(=) Excess Retained per Share2.322.632.84
LTM Dividend per Share0.950.950.95
(+) Excess Retained per Share2.322.632.84
(=) Adjusted Dividend3.283.583.79
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.59%1.59%2.59%
Fair Value$38.82$48.61$59.90
Upside / Downside-48.86%-35.96%-21.09%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)196.41199.54202.72205.95209.23212.56218.94
Payout Ratio23.25%36.60%49.95%63.30%76.65%90.00%92.50%
Projected Dividends (M)45.6673.03101.25130.36160.37191.31202.52

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate0.59%1.59%2.59%
Year 1 PV (M)66.2966.9567.61
Year 2 PV (M)83.4385.1086.78
Year 3 PV (M)97.50100.44103.44
Year 4 PV (M)108.88113.28117.80
Year 5 PV (M)117.90123.88130.10
PV of Terminal Value (M)2,052.832,156.922,265.18
Equity Value (M)2,526.842,646.562,770.91
Shares Outstanding (M)47.9747.9747.97
Fair Value$52.67$55.17$57.76
Upside / Downside-30.61%-27.32%-23.91%

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